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Case ECS-07/11: Kosovo* / State aid

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summary of the case

registered:

ex officio 2011

Since the entry into force of the Energy Community Treaty in 2006, the Contracting Parties are under an obligation to implement, i.e. to transpose and apply to each individual case, in their energy sectors the principle prohibition of State aid as applicable within the European Union. This commitment entails the obligation to establish institutions and procedures apt to enforce the State aid prohibition. As State aid may distort competition and affect cross-border trade in energy, the control of aid granted by public authorities is of key importance for the establishment of a regional energy market based on competition.

The Secretariat has assisted the authorities in Kosovo* in drafting State aid legislation. Failing the adoption of a Law within a reasonable time frame and due to the lack of enforcement, however, the Secretariat decided to follow up on this non-compliance by an Opening Letter.

Case ECS 07/11 information requests

procedural history

On 8 February 2011, the Energy Community Secretariat sent an Opening Letter to Kosovo* in accordance with Article 12 of the Rules of Procedure for Dispute Settlement. In the Opening Letter, the Secretariat takes the preliminary view that Kosovo* failed to fulfill its obligations under the Energy Community Treaty by not adopting legislation prohibiting State aid and enforcing that prohibition.

Procedure

By sending an Opening Letter, the Secretariat initiates a preliminary procedure, the purpose of which is giving the Party concerned the possibility, within two months, to react to the allegation of non-compliance with Energy Community law, and enabling the Secretariat to establish the full background of the case.

According to Articles 6 and 16 of the Rules of Procedure for Dispute Settlement, interested parties may be granted access to the case file and may submit written observations on the present case to the Secretariat within one month from 8 February 2011.

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